"So, you're saying a third of the stock market is tied up in seven AI companies that have no way to become profitable and that this is a bubble that's going to burst...?" - eviltoast

CWs: Cory Doctorow, newsletter, mentions of his upcoming book that he’s selling.

  • brucethemoose@lemmy.world
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    3 days ago

    Well Nvidia’s the one laughing to the bank here; they’ve offloaded their GPUs for cash and stakes, and Microsoft/OpenAI/‘AI’ providers are the ones holding the bag (and GPUs).

    Picks and shovels. The profiteers of the gold rush were the suppliers… I mean, Nvidia wants the grift to keep going, of course, but still.

    • bigfondue@lemmy.world
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      3 days ago

      They’ll be hit hard also. Apparently about 50% of their sales revenue comes from 3 customers, almost certainly members of the Magnificent 7 buying GPUs for data centers. In the modern economy, a quarter without revenue growth is failure, but imagine double digit decline.

      • DreamlandLividity@lemmy.world
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        2 days ago

        I mean, their stock price will take a hit. But realistically, that is not necessarily bad for Nvidia as a company, as long as they are ready for the burst and don’t over extend.

        • brucethemoose@lemmy.world
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          2 days ago

          Yeah, exactly.

          Their stock will tank, but financially? They will be fine. They’ll go back to a more sane baseline market with an absolute mountain of cash and disturbing market share to show for it.

    • artyom@piefed.social
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      3 days ago

      Seriously. NVDA and AMD are the only ones who are going to profit from this. And the CEOs, of course.